Decathlon S.E. Case Study

About Company

Decathlon SE is a France-based sports equipment retail merchant. Featuring more than 1,697 outlets in sixty nations and territories (2020), Decathlon ranks as the biggest sports equipment retail merchant in the world.

The firm handles the exploration, blueprint, manufacturing, allocation, and supply of its goods internally. The company also collaborates with worldwide providers; and promotes its indigenous products straightaway to customers in Decathlon-labeled superstore outlets.

In 2020, the revenue of the company jumped to US$ 11.4 billion.

Decathlon timeline

1976

Michel Leclercq set the company up in 1976. At that point, Decathlon commenced operations with just one outlet in Lille, France. Earlier, the name of its parent organization was Oxylane.

Subsequent Growth

After 10 years, Decathlon witnessed overseas growth in the following countries:

• 1986 – in Germany
• 1992 – in Spain
• 1993 – Italy
• 1997 – Belgium
• 1999 – the United Kingdom and Portugal
• 2001 – in Brazil
• 2003 – in mainland China
• 2009 – in India
• 2010 – in the Czech Republic and Turkey
• 2012 – Taiwan
• 2013 – Hong Kong
• 2016 – Singapore and Malaysia
• 2017 – in Indonesia, the Philippines, and South Africa
• 2018 – in Australia and South Korea 
• 2019 – in Canada                    

The organization hires over 90,000 people from 80 distinct countries.

The French sports equipment retail merchant stores a broad variety of sports commodities, starting from tennis rackets to sophisticated scuba diving gear. Normally, the retailing takes place in big supermarkets with sizes averaging 4,000 sq m.

The Decathlon Group promotes its merchandise through over twenty labels. The research and development hubs of the company are situated throughout France. Decathlon uses these hubs to formulate its product blueprints, filing up to forty copyrights every year.

2022

In 2022 January, the company nominated Barbara Martin Coppola, the chief digital officer of the Ingka Group, as the new Chief Executive Officer for its worldwide operations.

What type of company is Decathlon S.E.?

DecathlonSEisaprivately-held company.

To which industry does Decathlon S.E. belong?

Decathlon S.E. belongs to the retail industry.

When did Decathlon S.E. come into existence?

The company started operations in 1976; about forty-seven years back.

Who is the originator of the company?

The originator of the company is Michel Leclercq.

Where is the central office of Decathlon located?

The main office of the sports equipment retail behemoth is Villeneuve d’Ascq, France.

In how many locations does the company have its presence?

The company is present through its 1697 outlets in 60 nations, as per data provided till August 2021.

What are the products offered by Decathlon?       

The following are the products offered by the company:

• Apparel
• Athletic wear
• Sports goods

How many employees are working for Decathlon?         

As of 2020, the company hired 93,710 employees to run its operations.

Who is playing a key role in the exponential growth of Decathlon?

Barbara Martin Coppola, the CEO of the company, is one of the key people playing a major role in the exponential growth of the sports goods retail titan.

Who are the top rivals of the company?

Presently, the top contenders of the French sports retailer are the following:

• Sport 2000
• Go Sport
• Intersport  

What are the product brands retailed by Decathlon?

Decathlon adopts the vertical integration policy. Therefore, the company plans and produces its own goods and promotional strategies for its more than twenty varieties, with every sport and frequently sub-sports and sports communities having their distinct brands. The sports goods retail specialist retails the brands listed below:

• Volleyball (indoor) – Allsix
• Triathlon and nutrition – Aptonia
• Tennis – Artengo
• Handball – Atorka
• Cycling  – B’Twin
• Fishing – Caperlan
• Dance, Gym, and Fitness – Domyos
• Trekking – Forclaz
• Horse Riding – Fouganza
• Cricket – FLX
• Target Sports like Darts, Archery – Geologic
• Sports Electronics – Geonaute
• Golf – Inesis
• Cross-country skiing – Inovik
• Paddle sports – Itiwit
• Running – Kalenji
• Yoga – Kimjaly
• Team Sports – Kipsta
• Pétanque – KOODZA
• Field hockey – KOROK
• Padel – Kuikma
• Swimming – Nabaiji
• Sport Walking – Newfeel
• Rugby – Offload
• Boardwalk and Surfing – Olaian
• Squash – Opfeel
• Kitesurfing and Kiting – Orao
• Ice hockey – Oroks
• Combat Sports – Outshock
• Scooters, Skating, and Roller sports – Oxelo
• Badminton – Perfly
• Camping and Hiking – Quechua
• Mountain Biking – Rockrider
• Beach Tennis – Sandever
• Mountaineering – Simond
• Hunting – Solognac
• Diving – Subea
• Basketball – Tarmak
• Cycling (Ease-based) – Triban
• Sailing – Tribord
• Pelota and Wallball/One-wall handball – Urball
• Cycling (Racing/Performance-based) – Van Rysel
• Snowboarding and Skiing – Wed’Ze

The brands offering technical assistance for the goods for the firm’s passion brands include the following:

• Essensole – Innersoles and shoe soles
• Equarea – Attire tailored for the vigorous elimination of perspiration
• Stratermic – Temperate and light-weight garments
• Novadry – Breathable and water-resistant apparel
• Supportiv – Reinforcement and compaction
• Strenfit – Light-weight and strong artificial textiles (non-apparel)

What are the sponsorships borne by Decathlon S.E.?

Givenbelow is the list ofsponsorships or financial support that Decathlon provides:

Kipsta (Association football)

Clubs

• K.V. Oostende – Belgium
• R. Charleroi S.C. (2023-24 season and beyond) – Belgium
• R.E. Virton – Belgium
• RAAL La Louvière – Belgium
• RAEC Mons – Belgium
• Sporting Hasselt – Belgium
• AS Nancy-Lorraine – France
• Nîmes Olympique – France

Former clubs

• Lille – France
• Valenciennes – France
• Tampines Rovers – Singapore

Leagues and associations

Kipsta acts as the formal match ball provider for the leagues and associations mentioned below:

• Belgian Pro League
• Belgium Pro League (2023-24 season and beyond)
• Belgian Cup
• Challenger Pro League
• Ligue de Football Professionnel – France
• Belgian Super Cup
• Ligue 1
• Ghana Women’s Premier League
• Ligue 2

Opfeel (Squash)

• Antoine Camille Petrucci – France
• Mélissa Alves – France
• Robert Downer – England
• Camille Serme – France

Van Rysel (Cycling)

• Cofidis (gear provider)

Artengo (Tennis)

Players

• Daria Kasatkina – Russia
• Gaël Monfils – France

Events

• Moselle Open – France

Other noteworthy Decathlon sponsorships

In 2020 October, there was a declaration that Decathlon Ghana will act as the certified games retail collaborator of the Ghana Football Association for every Ghana national soccer squad kit and other commodities and goods. It inked the collaboration pact for four years and it was worth €146,000 or GH₵ one million.

In 2021 January, Decathlon inked a multi-year marketing contract with the National Basketball Association as an authorized retailer under Tarmak.

Decathlon Germany served as the principal financer of the IBU World Cup Biathlon for the 2021-2022 period.

The company also acquired 5-year identification copyrights for Stade Pierre-Mauroy in Lille at €6 million from 2022 and beyond. The new name of the arena is Decathlon Arena Stade Pierre-Mauroy.

Decathlon is also an authorized collaborator of the Paris 2024 Paralympic and Olympic Games.

International footprint

As of 2021 May, Decathlon ran 1,655 branded outlets globally in almost 65 nations and 1,000 cities.

Online supply of Decathlon products has been launched in the following countries:

• Bangladesh
• Australia
• Brazil
• Belgium
• Czech Republic
• Bulgaria
• Colombia
• Chile
• France
• Estonia
• Greece
• Germany
• Hungary
• Hong Kong SAR (Special Administrative Region)
• Indonesia
• India
• Israel
• Ireland
• Japan
• Italy
• Mexico
• Mainland China
• Poland
• Netherlands
• Philippines
• Portugal
• Singapore
• Romania
• Taiwan
• Spain
• Ukraine
• Turkey
• United Kingdom

Of late, Malaysia, Egypt, Vietnam, Thailand, and parts of Canada (Quebec and Ontario) have witnessed the footprints of Decathlon.

India operations

Decathlon goods are available in India. Customers can buy them directly from their retail outlets. This happened following an amendment in India’s Foreign Direct Investment guidelines and endorsement for Decathlon in 2013 February. Besides this, customers can buy Decathlon goods online via online resellers.

Tunisia operations

In the latter part of 2016, an exclusively online supply facility came into existence in Tunisia. The idea was to get the 1st outlet ready for the inauguration in Tunis, the capital city. In 2017 November, the initial outlet was unveiled in the Tunis City business hub in Tunis. A 2^nd site was unveiled in La Marsa, Tunisia in 2018 April.

Colombia operations

In 2017 February, the company launched its 1st outlet in Bogota, the capital of Colombia in the Parque La Colina shopping plaza.

Philippines operations

In 2017 July, Decathlon forayed into the Philippine marketplaces with a site in Tiendesitas, Pasig, and at Festival Mall, Filinvest Corporate City, Alabang, Muntinlupa.

Canadian venture

In 2017 August, the organization declared that it would launch its debut Canadian outlet in Brossard, Quebec in the 2018 springtime.

Indonesia

In 2017 November, the company forayed into the Indonesian territory.

Australia

In 2017 December, Decathlon’s inaugural Australian outlet commenced operations in Tempe, Sydney, New South Wales. Following a 2-year stint in the Australian region, the feasibility of the Australian enterprise came under doubt once it posted a deficit of Aus $19,563,819 during 2 years of doing business.

Ukraine

In 2018 April, Decathlon publicized it would launch its debut outlet in Kyiv, the capital of Ukraine, in the initial months of 2019.

Other territories

In 2019, the organization unveiled shops in Serbia, Malta, Bangladesh, Vietnam, and Ireland. It also commenced operations in California, the United States. Previously, the company endeavored to get into the US marketplaces as well. In doing so, in 1999, it acquired the eighteen Boston, Massachusetts territory sites of MVP Sports Stores. Alteration of the names of the sites under the Decathlon label took place, and afterward, these outlets shut down by 2006.

In 2020 November, the inaugural Decathlon outlet began operations in Riga, Latvia.

In 2021 April, there were plans to start operations in Mauritius. However, because of the lockdown, the gala launch happened on May 13^th, 2021.

In 2021 April, the debut outlet of the company was unveiled in Jeddah, Saudi Arabia.

Afterthe Russian incursion on Ukraine in 2022, several multinationals, specifically Western corporations withdrew their operations from Russia. However, Decathlon has been subject to censure for not declaring any cutback of its business, contrasting the majority of the Western contenders.

On March 29, 2022, the company proclaimed that it has discontinued its business and shelved the functioning of all its outlets in Russia. Nonetheless, there were hearsays in the middle of June that signified that the outlets are still functional and might be temporarily shut down by the close of June till it could replenish provisions.

What’s the secret behind the success of the company?

Decathlon has attributed its accomplishment principally to the slump of independent merchandisers in France. Simultaneously, the expansion of its indigenous brands posed significant troubles for conventional producers.

2008 was a watershed moment for the firm as the brand trounced all its rivals on three defining points:

• Market share 
• Profits
• Maximum turnover per sq m of the retail property leased

The company debatably ranks as the 3rd at a worldwide parameter. A 2008 study of 774 drainage basins at the Ministry of Economy and Finance’s postulation demonstrates that for sporting equipment, Decathlon is leading in 92.8% of regions.

This leading spot has the consequence of relegating its business rivals, comprising self-sufficient merchandisers.

Social benchmarks

The company maintains that it adopts a stringent plan when it is a matter of worker well-being. Furthermore, all the service providers functioning with Decathlon adopt the HRP (Human Responsibility in Production) procedure in all their actions.

Controversy

Nonetheless, the company has refused to reveal the names of its providers. It also has been subject to an inquiry following news that point towards infringement of the labor regulations in Sri Lanka by the company’s providers in the Special Economic Zones.

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